DBRS gives Trilogy notes B

DBRS said it has assigned a provisional issuer rating of B with a stable trend to Trilogy Energy Corp.

The agency said it has also assigned a provisional rating of B with a stable trend and a provisional recovery rating of RR4 to Trilogy's proposed senior unsecured notes.

The notes, estimated at up to C$300 million, are effectively subordinated to Trilogy's secured bank facility, the agency stated, adding that proceeds from the notes are to be initially used to pay down the bank facility, providing necessary liquidity for future exploration and development investments to ramp up production volumes.

The assigned ratings reflect continued successful effort to transition away from lower-margin dry gas drilling to higher-margin liquids-rich gas and oil drilling, DBRS said.

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